Budget 2025, anchored on three pillars of driving positive economic progress, generating transformative reforms, and ensuring the continued prosperity of the people, aims to address poverty reduction and support better wealth distribution towards a sustainable and inclusive economic growth. This is apt towards strengthening Malaysia’s position as a high performing nation, in line with the holistic Madani Economy framework and other national policies. The banking industry will continue to care for the welfare of the employees especially those in the lower income categories.
The reinforced commitment towards fiscal discipline is commendable by the sustained progress in lowering fiscal deficit to 3.8% next year from 4.3% in 2024 towards the medium term target of 3%.
We also welcome the call for further dialogue on the scoping of Service Tax that will be expanded to commercial businesses including fee based financial services as well as the introduction of Dividend Tax. The banking industry’s priority remains to deliver value to customers by providing reliable and trusted banking services.
Catalytic initiatives on infusing the adoption of Artificial Intelligence (AI) and digital transformation across key sectors is significant for the country and the region. This early realisation on the importance of AI, while ensuring it is applied responsibly through the ASEAN AI Safe framework, would heighten ASEAN’s global competitiveness. On this point, special tax deductions given to higher learning institutions offering courses on AI, digital technology, robotics, and among others is certainly a booster for the nation as it will provide high income jobs in the future.
In addition, with Malaysia assuming the ASEAN Chairmanship this year, Maybank through its presence in all 10 ASEAN countries will actively engage and connect individuals, businesses and governments for concerted growth, especially in the areas of sustainability, transition finance, trade finance, Islamic Finance and wealth management. Maybank looks forward to continuing to play its part in the strategic economic zones as well as industries such as data centre, semi-conductor and emerging new technologies.
The allocation of RM20 million towards National Scam Response Centre (NSRC) and launch of National Fraud Portal is a continued initiative to further mitigate scams. Collective efforts by the banking industry and close collaboration with Bank Negara Malaysia and the enforcement agencies have contributed in blocking suspicious transactions, and we remain focused in ensuring the safety of the public transacting online.
On the sustainability front, the Budget remains steadfast in accelerating the nation’s net-zero aspirations. From a financing point of view, Maybank will provide sustainable and transition finance solutions to address climate resiliency efforts, anchored on values-based financial services. On the move to encourage electric vehicle (EV) ownership, Maybank has already secured 29% market share based on the total number of EV sold in Malaysia as of August 2024.
Commentary by Dato’ Khairussaleh Ramli, President & Group CEO of Maybank & Chairman of The Association of Banks in Malaysia on Budget 2025.
Meanwhile, RM100 million matching funds provided to encourage new Islamic financing innovation based on Islamic values will further enhance the Islamic finance sector. The prospects of growth is immense, and Maybank will continue to offer responsible and effective financing solutions for individuals and businesses, particularly SMEs via our values-based financial solutions.
Maybank reiterates its commitment to support the realisation of Budget 2025, in serving our customers and stakeholders towards financial inclusion and economic empowerment.